The True Post (Web News)A federal appeals court on Friday ruled that most of former President Donald Trump’s sweeping global tariffs were unlawful, striking a significant blow to the centerpiece of his trade strategy.
In a 7-4 decision, the U.S. Court of Appeals for the Federal Circuit held that the statute Trump relied upon to enact his broadest tariffs — including the so-called “reciprocal” tariffs — does not provide the president with the authority to impose them.
“The Constitution vests the power to impose tariffs and other taxes squarely in Congress,” the court wrote. “Tariffs are a fundamental legislative power.”
The decision is temporarily on hold until October 14, allowing the Trump administration time to petition the Supreme Court for review.
Trump quickly denounced the ruling as “Highly Partisan” and predicted the Supreme Court would overturn it. “If these tariffs were eliminated, it would be a complete catastrophe for our country,” he posted on Truth Social. “If left in place, this ruling would literally destroy America.”
White House spokesperson Kush Desai emphasized that “the President’s tariffs remain in effect, and we expect to prevail in the end.”
The ruling marked Trump’s second consecutive defeat in the high-stakes case, V.O.S. Selections v. Trump, which consolidated lawsuits from 12 states and five small businesses. It is the furthest advanced among several challenges to Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify broad tariffs.
“For the second time, a federal court has determined the President’s so-called ‘Liberation Day’ tariffs are unlawful,” said attorney Jeffrey Schwab of the Liberty Justice Center, which represented the small-business plaintiffs. “This ruling shields American consumers and businesses from the uncertainty and damage caused by these illegal levies.”
Co-counsel Neal Katyal added that the decision underscores the Founders’ constitutional principle that presidents must act under the rule of law.
The Trump administration has maintained that IEEPA grants the president authority to impose country-specific tariffs to counter national emergencies. But the U.S. Court of International Trade rejected that interpretation in May, striking down Trump’s IEEPA-based tariffs, including those targeting Canada, Mexico, and China over fentanyl trafficking.
Although that ruling was briefly paused during appeal, appellate judges signaled skepticism toward Trump’s defense during oral arguments in July. On Friday, the Federal Circuit majority ruled the tariffs exceeded presidential power under IEEPA.
“Both the Trafficking Tariffs and Reciprocal Tariffs are unlimited in scope, duration, and amount,” the court found. “They cover nearly all imports, target nearly all trading nations, impose fluctuating high rates beyond those authorized under U.S. tariff law, and lack time limits.”
The four dissenting judges argued that the majority erred in its interpretation and that plaintiffs had not justified summary judgment in their favor.
The case was heard by 11 of the 12 Federal Circuit judges. Judge Pauline Newman, 98, did not participate, as she has been suspended since 2023 amid a dispute over cognitive testing requirements.
The ruling came just hours after Trump’s top trade officials urged the court to consider “supplemental developments,” including a Congressional Budget Office estimate that tariffs would reduce U.S. deficits by $4 trillion over the next decade.
Commerce Secretary Howard Lutnick warned that invalidating the tariffs would cause “severe and irreversible harm to U.S. foreign policy and national security,” undermine negotiations with trade partners, and risk retaliatory measures abroad.